System and method a risk based purchase of goods

• US 6,785,661 B1
• Filed: 03/17/1998
• Issued: 08/31/2004
• Est. Priority Date: 01/04/1995
• Status: Expired due to Term

• Current Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Original Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Inventors: Mandler, Maria M., Krajewski, William Joseph, Benson, Carol, Engber, Marjorie, Battenfelder, Robert R., Blemings, Cornelia, Nevens, James E., Figliozzi, John P., Luke, Keith W., Dixon, Kathleen M., Rouen, James E., McLaughlin, Ann P., Orbach, Levi Y., Baldwin Moody, Carol A.
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Elisca, Pierre E
• Application Number:
  US09/042,774
• Time in Patent Office: 2,359 Days
• Field of Search: 705/53, 705/77, 705/26, 705/30, 705/40, 705/14, 705/38, 705/39, 705/35
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0613 Third-party assisted
• CPC Class Codes: G06Q 30/0619 Neutral agent
• CPC Class Codes: G06Q 30/0637 Approvals
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G07F 17/0014 for vending, access and use of specific services not covered anywhere else in G07F17/00 meter-controlled dispensing of liquid, gas or electricity G07F15/00
• CPC Class Codes: G07F 7/00 Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

A system and method provides for enabling on-line transactional services among sellers and buyers having no previous relationship with each other. The system includes a financial clearinghouse for receiving a request for goods or services from a buyer and making a real-time determination of a risk classification of the buyer utilizing an on-line repository of credit information. The financial clearinghouse determines a risk-based discount fee as a function of the buyer'"'"'s risk classification in order to establish a payment amount to the seller from the clearinghouse. If the transaction is authorized by the financial clearinghouse, the financial clearinghouse transmits the payment amount to the seller and transmits an invoice to the buyer for the purchase price of the transaction. The system can also include a broker coupled to the financial clearinghouse for providing an on-line order acceptance and processing capability between the buyers and sellers.

Claims

1. A financial clearinghouse enabling a buyer to request and obtain quotes for at least one of goods and services from a plurality of sellers via a communications network, the financial clearinghouse comprising:

means for receiving a registration application of the buyer;

means for approving the registration application of the buyer;

means for automatically determining a risk classification for the buyer in response to the approved registration application;

means for automatically determining a risk-based discount fee for the buyer as a function of the risk classification, the discount fee establishing a percentage of a purchase price of the at least one of goods and services requested by the buyer;

means for receiving a request for a quote from the buyer for the at least one of the goods and services; and

means for receiving the quote from at least one of the plurality of sellers, the quote being determined as a function of the discount fee.

2. The financial clearinghouse as recited in claim 1, further comprising:

means for forwarding the request for the quote for at least one of the goods and services to at least one of the plurality of sellers.

3. The financial clearinghouse as recited in claim 1, wherein the risk classification is determined as a function of information provided in the registration application.

4. The financial clearinghouse as recited in claim 1, wherein the risk classification determined as a function of credit information received from an on-line credit repository.

5. The financial clearinghouse as recited in claim 1, wherein the risk classification is determined in real time.

6. The financial clearinghouse as recited in claim 1, further comprising:

means for transmitting an amount equal to the purchase price less the discount fee multiplied by the purchase price to one of the plurality of sellers selected by the buyer.

7. The financial clearinghouse as recited in claim 1, further comprising:

means for transmitting an invoice for an amount equal to the purchase price to the buyer.

8. The financial clearinghouse as recited in claim 1, further comprising:

means for determining a credit line for the buyer.

9. A computer-implemented method of enabling a buyer to request and obtain a quote for at least one of goods and services from a plurality of sellers, the method comprising the steps of:

receiving a registration application of the buyer;

determining whether to approve the registration application of the buyer;

automatically determining a risk classification for the buyer;

automatically determining a risk-based discount fee for the buyer as a function of the risk classification, the discount fee establishing a percentage of a purchase price of at least one of the goods and services requested by the buyer;

receiving a request for a quote from the buyer for at least one of the goods and services; and

receiving the quote from at least one of the plurality of sellers, the quote being determined as a function of the discount fee.

10. The method as recited in claim 9, further comprising the step of:

forwarding the request for the quote for at least one of the goods and services to at least one of the plurality of sellers.

11. The method as recited in claim 9, wherein the risk classification is based on information provided in the registration application.

12. The method as recited in claim 9, wherein the risk classification is based on credit information received from an on-line credit repository.

13. The method as recited in claim 9, wherein the risk classification is determined in real time.

14. The method as recited in claim 9, further comprising the step of:

transmitting an amount equal to the purchase price less the discount fee multiplied by the purchase price to one of the plurality of sellers selected by the buyer.

15. The method as recited in claim 9, further comprising the step of:

transmitting an invoice for an amount equal to the purchase price to the buyer.

16. The method as recited in claim 9, further comprising the step of:

determining a credit line for the buyer.

17. A financial clearinghouse for communication over a communication network with at least one of a buyer, a seller and a broker for an electronic transaction for a sale of goods or services, the financial clearinghouse comprising:

a message processor for receiving a first message from the communication network;

an Electronic Data Interchange (EDI) translator for translating the first message having a first format provided by the message processor to a translated first message having a second format;

a main processor for processing the translated first message provided by the EDI translator;

an input device communicating with the main processor;

a output device communicating with the main processor;

a memory communication with the main processor, the memory including an accounting module, the main processor executing instructions of the accounting module to establish an accounts receivable database, wherein the accounts receivable database includes at least one of an amount paid by the buyer, an amount due to the seller and an amount due to the broker, the memory also including a database module for providing instructions to the main processor, providing rules for credit analysis, and establishing a credit database, wherein at least one of a risk rating, a discount fee and a credit limit for the buyer is determined using the credit database;

a reverse EDI translator for receiving a second message from the main processor, the reverse EDI translator translating the second message having the second format received from the main processor to a translated second message having the first format;

wherein the translated second message is provided to the communication network to at least one of the buyer, seller and broker to facilitate the electronic transaction.

18. The financial clearinghouse as recited in claim 17, wherein the first format is EDI and the second format is ASCII.

19. The financial clearinghouse as recited in claim 17, wherein the input device accesses information from at least one of a user and the communication network, and the output device displays data to the user.

20. A financial clearinghouse for conducting an electronic transaction for a sale of goods over a communication network, the financial clearinghouse comprising:

an EDI system for processing messages exchanged over the communication network between parties to the electronic transaction;

a processing system communicating with the EDI system;

an input device communicating with the processing system;

an output device communicating with the processing system; and

a memory communicating with the processing system including a database module for providing instructions to the processing system, providing rules for credit analysis, and establishing a credit database, wherein at least one of a risk rating, a discount fee and a credit limit is determined for a buying party to the electronic transaction using the credit database and wherein in an electronic transaction between the buying party and at least one seller of a plurality of sellers the at least one of the risk rating, the discount fee and the credit limit is used to establish a payment amount to the seller.

21. The EDI system of claim 20 further comprising a translator for translating a message received over the communication network in a first format to a message having a second format.

22. The EDI system of claim 21 further comprising a reverse translator for translating a message received in the second format into a message having the first format prior to providing the message to a party to the electronic transaction over the communication network.

23. The financial clearinghouse as recited in claim 20 further comprising a message processor for receiving a message transmitted over the communication network by a party to the electronic transaction.

24. The financial clearinghouse as recited in claim 20, wherein the input device accesses information from at least one of a user and the communication network, and the output device displays data to the user.

25. The financial clearinghouse as recited in claim 20, wherein the EDI system translates messages between an EDI format and an ASCII format.

26. The financial clearinghouse as recited in claim 20, wherein the memory also includes an accounting module, the processing system executing instructions of the accounting module to establish an accounts receivable database, wherein the accounts receivable database includes at least one of an amount paid by and an amount due to a party to the electronic transaction.